Why SOC 2 might be critical for your Round A

Overloaded with tasks

Start-ups are weighted with dozens of tasks concerning business growth. Startup founders  have to secure new funding, establish a foothold in the market, and attract and retain new clients with limited resources. With so much on their plates, unfortunately security compliance is often not the top priority.

Small businesses often neglect security compliance until a later stage of its development, when it has become an urgent topic of conversation due to meeting customer demands or a lack of sound security posture. Waiting until you have no choice but to address compliance, is unnecessary.

 

 

Is Security Compliance a Costly Unnecessary Obstacle or a Vital Strategy for Business Growth?

In the early stages, startup founders are often not too concerned about cyberattacks, security policies and controls, as they are mainly focused on growth, especially during the venture capital stage. But what if security compliance and business growth are interconnected? 

Contrary to popular belief, security compliance is not only for larger enterprises. In today's digital  age, small businesses are just as vulnerable to cyber breaches and attacks. In fact, Startups are often not equipped to handle these attacks and are less likely to recover - leaving 75% unable to continue after a ransomware incident.   

 

 

Making security compliance a priority from the start

Prioritizing security compliance shows that a company adheres to highly- recognised information security standards. Having compliance frameworks or regulations such as SOC 2, ISO 27001, HIPAA, PCI DSS, and NIST 800-53 under your belt, shows that your organization takes data protection seriously and that your people, processes, policies and infrastructure are compliant with best practices. Additionally, it shows an organization’s ability to navigate well around the digital environment and manage risks properly. Security compliance not only protects your company's data but also builds trust among your customers, prospects, partners and investors.

 

Security compliance is a huge selling point when securing deals with clients, as it is (almost always) vital for attracting and retaining customers. Many companies consider data security compliance as a non-negotiable before doing business together. Security compliance aids in driving revenue growth; as clients, prospects, partners, and investors prefer to work with companies that can prove their security compliance program. Venture capitalists also prioritize the security and risk assessment of early-stage companies before investing.

 

 

If you think that compliance is expensive, you would hate the effect of being non-compliant. 

Implementing a security compliance strategy can be challenging, tedious, time-consuming and let’s be honest, incredibly stressful. Many startups attempt the “do-it-yourself method”, stretching their budgets and resources, but this can sadly sometimes expose them to additional compliance gaps, operational disruptions, compliance costs, and human error. Automation tools for compliance management are changing the landscape, enabling companies to streamline tasks, consolidate obligations, complete risk assessments, automate evidence collection, and enjoy audit collaboration. Choosing a do-it-yourself approach can be riskier compared to utilizing automated compliance tools, along with expert guidance. These tools provide affordable and industry-specific solutions for security compliance needs. 

 

 

Compliance can give start-ups a head-start

Start-ups need to recognize that security compliance should be a necessity when it comes to a fundamental growth strategy. It holds great value when an organization is in early phases of development:

• Compliance makes companies desirable to work with 
• Data is protected against cyber breaches
• Documentation is recorded correctly

In summary, security compliance is critical for early-stage startups to progress beyond the initial stages and secure funding for growth. Ultimately, a strong and impressive security compliance management system demonstrates that your business is protected and reliable. Neglecting compliance hampers your business growth and should be seen as a vital strategy rather than an inconvenient obstacle or a mere checklist item.